Trade Setup for Thursday: Top 15 things to know before Opening Bell

According to Nagaraj Shetti of HDFC Securities, this downward corrective leg is likely to continue in the Nifty for the next session and could reach the next support levels of 11,280 in the next couple of sessions.

The market fell for the sixth straight session. The BSE Sensex tanked 487.50 points to 37,789.13 while the Nifty 50 plunged 138.40 points to 11,359.50 forming a bearish candle on the daily scale.

The Nifty has breached the junction of the 40-day exponential moving average, the daily lower Bollinger & lower end of a falling channel with a decisive margin which shows the bears are having an upper hand on the index and are determined to push the index further down, experts said.

"The expanding daily Bollinger Bands are assisting the bulls in their task. The intraday momentum indicators, however, are showing oversold readings. This may result into a minor degree bounce till 11,450-11,480," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

Nevertheless, the bounce should be used as a selling opportunity, he said suggesting sell on a rise would be the strategy going ahead. "From a short term perspective, 11,100-11,000 will be the target area."

According to Nagaraj Shetti – Senior Technical & Derivative Analyst, HDFC Securities, this downward corrective leg is likely to continue in the Nifty for the next session and could reach the next support levels of 11,280 in the next couple of sessions.

Nifty closed at 11,359.45 on May 8. According to the Pivot charts, the key support level is placed at 11,311.3, followed by 11,263.1. If the index starts moving upward, key resistance levels to watch out are 11,443.4 and 11,527.3.

Nifty Bank

The Nifty Bank index closed at 28,994.40, down 293.80 points on May 8. The important Pivot level, which will act as crucial support for the index, is placed at 28,876.7, followed by 28,759. On the upside, key resistance levels are placed at 29,186.7, followed by 29,379.

Call options data

Maximum Call open interest (OI) of 8.74 lakh contracts was seen at the 11,800 strike price. This will act as a crucial resistance level for the May series.

This was followed by 11,700 strike price, which now holds 7.79 lakh contracts in open interest, and 11,500, which has accumulated 5.92 lakh contracts in open interest.

Significant Call writing was seen at the strike price of 11,500, which added 1.59 lakh contracts, followed by 11,900 strike that added 1.49 lakh contracts.

Call unwinding was seen at the strike price of 11,000 that shed 0.17 lakh contracts.

Put options data

Maximum Put open interest of 24.66 lakh contracts was seen at 11,000 strike price. This will act as a crucial support level for the May series.

This was followed by 11,500 strike price, which now holds 19.43 lakh contracts in open interest and 11,800 strike price, which has now accumulated 16.30 lakh contracts in open interest.

Put writing was seen at the strike price of 11,000 which added 1.42 lakh contracts, followed by 11,400 strike that added 1.19 lakh contracts and 10,900 strike which added 0.71 lakh contracts.

Significant Put unwinding was seen at the strike price of 11,500, which shed 1.36 lakh contracts, followed by 11,700 strike price that shed 0.73 lakh contracts and 11,600 strike price that shed 0.64 lakh contracts.

FII & DII data

Foreign Institutional Investors (FIIs) sold shares worth Rs 701.5 crore while Domestic Institutional Investors (DIIs) bought Rs 232.95 crore worth of shares in the Indian equity market on May 8, as per provisional data available on the NSE.

Fund Flow Picture

Stocks with a high delivery percentage

High delivery percentage suggests investors are accepting the delivery of the stock, which means that investors are bullish on it.

16 stocks saw a long buildup

27 stocks saw short covering

A decrease in open interest along with an increase in price mostly indicates short covering.

87 stocks saw a short build-up

An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.

Bharat Financial Inclusion: Company assigned a pool of receivables of an aggregate value of Rs 1,107.41 crore to one of the largest private sector banks on a direct assignment basis.

One stock under ban period on NSE

For May 9, Jet Airways is in the list for stocks under a ban. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.